Vanguard launches four fixed income ETFs

Vanguard has launched four fixed income ETFs on the London Stock Exchange;

They offer regional exposure to US and European corporate bonds, US Treasuries and euro-denominated debt issued by governments based in the eurozone.

The ETFs will carry a charge of 0.12% and track Barclays indices.

Vanguard tallies 21 ETFs registered in the UK and has over $100bn (€90.8bn) in assets under management across its European mutual fund and ETF range.

Ken Volpert, head of Investments for Vanguard in Europe, commented: “Today’s launch complements Vanguard’s existing range of index mutual funds and ETFs. They will enable investors to build a broadly diversified fixed income and equity portfolio at a low-cost.”

Lida Eslami, listed products manager at the London Stock Exchange, said: “This listing is testament to London’s continuing status as the pre-eminent European destination for issuers and investors.

“Total on-exchange turnover of fixed income ETFs on our markets was over £88bn (€111.2bn) in 2015, up by 84% compared to 2014 – a clear demonstration of the growing appetite for these instruments.”

As at end 2015, Vanguard had approximately $280bn (€254.2bn) in actively managed bond funds, $462bn (€419.4bn) in index bond funds and ETFs, and $180bn (€163.4bn) in money market funds.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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